Firstsun Capital Bancorp(FSUN) - 2023 Q3 - Quarterly Report

Financial Performance - Net income for Q3 2023 was $25.2 million, or $1.00 per diluted share, compared to $26.5 million, or $1.04 per diluted share in Q3 2022[238]. - For the nine months ended September 30, 2023, net income totaled $79.5 million, or $3.13 per diluted share, compared to $34.6 million, or $1.49 per diluted share for the same period in 2022[239]. - Net income for the three months ended September 30, 2023, was $25,232,000, a decrease of 4.8% from $26,513,000 for the same period in 2022[241]. - Income before income taxes for the nine months ended September 30, 2023, increased by $57.7 million to $108.4 million, driven by higher net interest income and lower noninterest expenses[248]. - Net interest income for the three months ended September 30, 2023, was $73,410,000, an increase of 7.5% from $68,486,000 for the same period in 2022[241]. Asset and Loan Growth - Total loans, excluding loans held-for-sale, increased to $6,179,522,000 as of September 30, 2023, up from $5,556,686,000 a year earlier, representing an increase of 11.2%[241]. - Total assets reached $7,756,875,000 as of September 30, 2023, compared to $7,052,917,000 a year earlier, marking a growth of 10%[241]. - Total average loans grew to $6.2 billion at September 30, 2023, an increase of $0.7 billion or 12.1% compared to September 30, 2022[271]. - Identifiable assets for the Banking segment grew by $0.5 billion to $6.8 billion at September 30, 2023, from $6.3 billion in the same period in 2022[247]. - Total loans increased to $6.2 billion as of September 30, 2023, compared to $5.9 billion at December 31, 2022[320]. Deposits and Funding - Total deposits increased to $6,339,847,000 as of September 30, 2023, from $5,760,418,000 a year earlier, reflecting a growth of 10.1%[241]. - Approximately $2.0 billion or 32.0% of the deposit portfolio was uninsured as of September 30, 2023[340]. - Total deposits rose by $0.6 billion to $6.3 billion at September 30, 2023, compared to $5.8 billion at December 31, 2022, marking a 10.4% growth[339]. - Immediate funding availability totaled $3.3 billion as of September 30, 2023[348]. - Average interest-bearing deposits increased by $0.8 billion or 19.4% in Q3 2023 compared to the same period in 2022[272]. Noninterest Income and Expenses - Noninterest income accounted for 20.3% of total revenue in Q3 2023[238]. - Noninterest income for the nine months ended September 30, 2023, was $61,871,000, compared to $70,948,000 for the same period in 2022, reflecting a decrease of 12.9%[241]. - Noninterest income decreased by $6.3 million to $18.7 million for the third quarter of 2023 from $25.0 million for the same period in 2022, primarily due to a decrease in income from mortgage banking services[293]. - Noninterest expenses increased by $0.6 million to $56.2 million for Q3 2023, compared to $55.5 million in Q3 2022[305]. - Total noninterest expenses decreased by $13.2 million to $170.5 million for the nine months ended September 30, 2023, from $183.7 million in the same period in 2022[307]. Credit Quality and Losses - Provision for credit losses rose by $3.1 million to $6.3 million for Q3 2023, attributed to organic loan growth and a $2.9 million charge-off on a certain exited customer relationship[247]. - The allowance for credit losses was $78,666,000, representing 1.27% of total loans, an increase from 1.07% in the previous year[331]. - Nonaccrual loans as a percentage of total loans increased to 0.66% as of September 30, 2023, up from 0.49% at December 31, 2022[337]. - The provision for credit losses for the three months ended September 30, 2023, was $3,600,000, compared to $3,750,000 for the same period in 2022[331]. - Total nonperforming assets increased to $49.1 million as of September 30, 2023, from $35.4 million at December 31, 2022, representing a 38.7% increase[337]. Regulatory and Capital Requirements - The company is subject to various regulatory capital requirements and routinely analyzes its capital structure[352]. - The effective tax rate for the nine months ended September 30, 2023, was 21.3%, compared to 19.8% for the same period in 2022[311]. - The Bank could pay dividends to FirstSun of approximately $165.5 million without prior regulatory approval as of September 30, 2023[345]. - Stockholders' equity increased to $843.7 million as of September 30, 2023, up by $69.2 million or 8.9% from $774.5 million at December 31, 2022[351]. - Liquid assets amounted to $435.6 million, or 5.6% of total assets, as of September 30, 2023, compared to $307.9 million, or 4.1% of total assets, at December 31, 2022[346].